GLAS Agency Announces Encumbrance on Vedanta Iron and Steel Limited Shares Related to Bond Issuance
GLAS Agency (Hong Kong) Limited, acting in its capacity as a security trustee for bond holders, has announced the creation of an encumbrance over equity shares in several entities, including Vedanta Iron And Steel Limited (VISL). This action is associated with bonds issued by Vedanta Resources Finance II Plc.The encumbrance affects the equity shares of various listed subsidiaries held by members of the promoter group, specifically Twin Star Holdings Limited, Welter Trading Limited, and Vedanta Holdings Mauritius II Limited. These entities are subsidiaries of Vedanta Resources Limited (VRL).
Bond Issuance Details
Vedanta Resources Finance II Plc issued three sets of Guaranteed Senior Bonds on June 25, 2026. The issuance involves the following details:| Bonds | Amount | Interest Rate | Maturity Date |
|---|---|---|---|
| Guaranteed Senior Bonds | US$ 500,000,000 | 7.000% | 2032 |
| Guaranteed Senior Bonds | US$ 700,000,000 | 7.375% | 2034 |
| Guaranteed Senior Bonds | US$ 550,000,000 | 7.750% | 2037 |
To facilitate these bonds, a Principal Trust Deed was executed on July 13, 2026, between GLAS Agency (Hong Kong) Limited, the Issuer, and VRL. Subsequent to this, supplemental trust deeds are scheduled to be executed involving members of the promoter group to establish specific obligations and conditions.
Key Terms and Restrictions
The terms and conditions governing the bonds include several restrictions on the Promoter Group Entities:- The entities are restricted from creating or allowing any encumbrance or security interest over assets directly held by them unless certain conditions are met.
- Twin Star, Welter, and VHM II are required to acquire or dispose of shares of the listed subsidiaries only as specified in the agreement.
- VRL and its direct or indirect subsidiaries must retain control over VISL, which includes owning at least 50.1% of the issued equity share capital of VISL.
- Following an Event of Default, the Promoter Group Entities are restricted from disposing of assets except as specifically permitted by the trust deeds.
Impact on Vedanta Iron And Steel Limited
The encumbrance covers a significant portion of the equity in Vedanta Iron And Steel Limited. The specific figures for the shares involved are detailed below:| Description | Number of Shares | Percentage of Total Capital |
|---|---|---|
| Shares in the nature of encumbrance | 2,20,47,24,753 | 56.38% |
It was clarified that as of the date of this announcement, no pledge has been created by any members of the promoter group or associated offshore companies over the equity shares of the listed subsidiaries in relation to these bonds. Furthermore, the obligations for Twin Star, Welter, and VHM II regarding each bond will take effect from the date the relevant Supplemental Trust Deed is executed.
VISL Stock Price Movement
As of 9:21 AM, shares of Vedanta Iron and Steel Limited are slipping by 0.21% in live trading, currently at ₹33.3. Trading activity has reached a volume of 124,695 shares so far this morning.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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